LONDON - Global commodities trader Trafigura Group is looking to take a lead in the trading industry to tackle climate change and will set a target to reduce the intensity of its emissions this year, the company said in its annual responsibility report.
The privately-held Geneva based firm said it made significant strides to improve the accuracy of its greenhouse gas emissions reporting to meet increasingly detailed data requests from banks and other stakeholders.
Its total emissions rose by 26% to 8 million tonnes of carbon dioxide equivalent (tCO2e) in 2019 from 6.38 million tCO2e in 2018, Trafigura said, of which seaborne trade accounted for 89% of its total.
“The increase was due to increased volumes traded, changes in Trafigura’s asset portfolio and more comprehensive reporting,” the firm said in its report.
“We introduced carbon intensity metrics in 2019 and will be applying these across the Group from 2020.”
The company saw a sharp rise of 119% to just over 1 million tCO2e in its Scope 1 and Scope 2 emissions largely due to the 39 ships that joined its fleet. Scope 1 includes direct emissions while Scope 2 includes indirect ones such as electricity purchases.
Emissions from its newly acquired zinc smelting and mining firm Nyrstar facilities will be included in 2020.
Among other measures to reduce its carbon footprint, Trafigura established a power and renewables division last year and set up an internal climate change group to oversee its green initiatives in late 2018.
Further, Trafigura said it had no current plans to increase its presence in the coal market.
Reporting by Julia Payne, editing by Louise Heavens